In the case of Sherwin Jerrier and Outsurance Insurance Company Limited, the judge held that because he had not informed his insurers about two previous accidents for which he had chosen not to lodge claims, Outsurance did not have to pay him a claim for R600,000 damages he sustained after his car was wrecked in an accident.

So that your insurance can assess your risk potential, you need to report every incident, no matter how trivial, even if you don’t intend to claim.

The judge noted that while neither of the two previous accidents was reported, Jerrier had, of his own volition, referred to them when interviewed by the insurance company’s investigator after he claimed for the most recent accident. However, he said, in terms of the wording of the policy, they should have been reported. ‘Both (previous) incidents would cause a reasonable man to conclude that knowledge of them would indicate a change in Jerrier’s circumstances, at the very least from a claims history perspective, but also as a moral risk that may influence whether the company would give him cover, the conditions and the premiums.’ On this basis the judge absolved Outsurance from liability.